Does macroeconomic stability promote economic growth? Some econometric evidence from SAARC countries

Purpose The main purpose of this research is to examine the influence macroeconomic stability on economic growth SAARC (South Asian Association for Regional Cooperation) countries. Design/methodology/approach Using panel data 1991–2020, fixed effect regression analysis, pooled ordinary least squares and generalized method moments techniques have been conducted demonstrate whether contributes growth. Moreover, cross-sectional dependency test, unit root correlation analysis granger causality tests run. Findings Robust findings indicate that inflation has negative impacts which indicates lower level instability promotes countries’ This study also observed foreign direct investment, domestic credit delivered private sector, currency exchange institutional difference across countries are affirmatively connected while labor force negatively associated with Originality/value Empirical signify significant effects superior contributions policy makers achieve sustainable